The rising cost of lithium batteries could lead to a surge in the price of electric cars, the Telegraph reported.
According to price reporting agency Benchmark Mineral Intelligence, lithium ion battery makers have contacted customers to renegotiate contracts, placing the responsibility on the rise in cathode and anode raw material prices as well as rising costs for foils and energy.
“Battery makers appear set to pass on lithium price increases to the automotive manufacturers and other downstream customers, which could have a major impact on electric vehicles coming to market between 2022 and 2024,” the agency told the outlet.
Prices for battery grade lithium carbonate have gone up 300 per cent in the last year, reaching $28,765, while prices for nickel and cobalt have registered a 62.4 per cent growth year-on-year. Lithium supply shortages are also to blame for the price surge, as experts believe they will continue in the next few years.